Karnataka Government to waive farmers’ loans

The Karnataka Government has decided to waive off agricultural loans obtained by farmers from co-operative banks in the State.

Speaking to reporters in Bangalore, Chief Minister H D Kumaraswamy said the Government would auction the encroached Government land in Bangalore and utilize the proceeds to repay the loans farmers had obtained from co-operative banks.

“I am not cracking a joke or making a statement to please the farmers or confuse the Opposition. I have taken a decision on waiver of farm loans after lengthy discussions with bureaucrats and officials”, Kumaraswamy said.

Pointing out that the loan waiver will apply only to farmers, who had obtained agricultural loans from co-operative banks, Kumaraswamy dared the Opposition Congress to bring pressure on the Congress-led Federal Government to issue a similar directive to nationalized banks on loan waiver.

However, Kumaraswamy refused to set a time-frame for beginning the exercise, raising doubts in the minds of the Opposition Congress leaders. He merely told reporters that the farmers will have to wait till the ensuing financial year ends in April 2007 so that the Government can work out the modalities.

But, Deputy Chief Minister B S Yediyurappa, who is also the Finance Minister, appealed to the farmers to continue repaying their loans till the Government comes out with a clear-cut order in the matter.

Meanwhile, Karnataka Pradesh Congress Committee (KPCC) President M Mallikarjun Kharge dubbed the Chief Minister’s announcement on loan waiver as a “gimmick”. He referred to Yediyurappa’s call to the farmers to continue repaying their loans and appealed to the Government to remove the confusion in the minds of the farmers.